HK Stock Market Move | BIDU-SW(09888) has risen again by over 5%, and its subsidiary Kunlun Xinyi has submitted an application for listing on the Hong Kong Stock Exchange.

BIDU-SW (09888) rose by over 5%, with a cumulative increase of over 15% for the week. As of the time of writing, it rose by 5.32% to HK$138.5, with a turnover of HK$684 million. On the news front, Baidu Group announced on the Hong Kong Stock Exchange that on January 1st, Kunlun Chip had submitted an application form (A1 form) for listing on the main board of the Hong Kong Stock Exchange for approval in a confidential manner through its joint sponsors. The current proposal is to split through the global issuance of Kunlun Chip shares. Public information shows that Kunlun Chip is a semiconductor subsidiary under Baidu that focuses on AI chip development, with its products mainly used in data centers, cloud computing, and autonomous driving, among other areas. JPMorgan predicts that Baidu Kunlun Chip's revenue will skyrocket from approximately 1.3 billion yuan in 2025 to 8.3 billion yuan in 2026, a six-fold increase. If estimated at an average P/S ratio of 10 times for tech stocks, the valuation is expected to exceed 80 billion yuan, significantly increasing the value of Baidu's holdings.